Despite two days of gains the Australian share market looks to return to the red following a global sell-off on equity markets. Wall Street saw volatile trade as retail sales were shown to have dropped and producer prices pulled back, both in September, while the Fed’s Beige Book reported moderate growth. European stocks posted steeper losses as fears re-ignited about Greece, with the nation’s benchmark tumbling almost 10 per cent at one point.
On the local front the economic calendar is light and company developments will steal the spotlight. Ten Network Holdings Limited
(ASX:TEN) is expected to release full year results while
Crown Resorts Limited (ASX:CWN) and Ansell Limited (ASX:ANN) will hold annual general meetings. Following Rio Tinto Limited’s (ASX:RIO) record output result yesterday quarterly production reports will continue to roll in from Fortescue Metals Group Limited (ASX:FMG) and Woodside Petroleum Limited (ASX:WPL).
Global markets
Wall Street ended down on Wednesday but off the session’s lows: The Dow Jones Industrial Average fell 1 per cent to close at 16,142, the S&P 500 fell 0.8 per cent to close at 1,862 and the Nasdaq fell 0.3 per cent to close at 4,215.
European markets plunged on Wednesday: London's FTSE 100 sank 2.8 per cent, France's CAC 40 sank almost 3 per cent and Germany's DAX sank 2.9 per cent.
Asian markets moved higher on Wednesday: Japan’s Nikkei added 0.9 per cent, Hong Kong’s Hang Seng added 0.4 per cent, and China’s Shanghai Composite added 0.6 per cent.
The Australian share market rose for a second straight day yesterday following a series of steep falls: The S&P/ASX 200 index gained 38 points to finish at 5,246 on Wednesday. On the futures market the SPI is 42 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.8823, 55.22 Pence Sterling, 93.5 Yen and 68.84 Euro cents.
Company news
Whitehaven Coal Limited
(ASX:WHC) has lifted coal output by 30 per cent to 3.5 million tonnes in the first quarter of the current financial year. The coal miner has confirmed its Maules Creek mine remains on track with the project is now 68 per cent complete, ahead of schedule and on budget. The quarterly report came a week after China’s Ministry of Finance reintroduced tariffs on coal imports. Whitehaven said China is not a significant market for the company with its sales to China last year only making up about 7 per cent of total sales. Shares in Whitehaven Coal dropped 3.24 per cent to close at $1.495 following the announcement.
Property investor Charter Hall Group
(ASX:CHC) and its new partner super fund HOSTPLUS have tied up a $603 million acquisition. The purchase was announced last month and includes a portfolio of 54 hospitality assets across Australia bought from Woolworths Limited
(ASX:WOW) subsidiary ALH Group. The assets include some of the country’s iconic watering holes across Victoria, Queensland, Western Australia and South Australia. Shares in Charter Hall Group closed 0.24 per cent higher at $4.16 following the announcement.
Commodities
Gold has gained $10.50 to $US1,245 an ounce for the December contract on Comex.
Silver has lifted $0.06 to $17.46 for December.
Copper has lost $0.08 to $3.01 a pound.
Oil has slipped $0.06 to $US81.78 a barrel for November light crude in New York.
